New Zealand was in recession long before the rest of the world.
It didn’t look so bad because the old government was spending lots of our money, but the trading sector was going backwards.
National has been talking about the need for an export led recovery and Statistics NZ shows it’s started –
The annual trade balance for the year ended April 2010 was a surplus of $161 million. “This is the first annual trade surplus recorded since July 2002,” added Louise Holmes-Oliver. The trade balance for the April 2010 month was a surplus of $656 million or 16.5 percent of the value of exports. This compares with an average April trade deficit of 0.6 percent of exports for the previous 10 years, with a mix of surpluses and deficits recorded during this period.
And what are the big contributors to that surplus? Dairy products, wood and meat.
Aren’t we pleased we didn’t take any notice of the politicians of the 1980s when they said farming was a sun set industry?
Oh, and biased as I am, I’m not giving all the credit for this to the government. It doesn’t control the demand or price of our goods on export markets. Nor was it responsible for the recession which dampened demand for imported goods at home.